Keep An Eye on These 4 Bank Stocks With Recent Dividend Hikes

The year 2026 began on a subdued note. The S&P 500 increased modestly and the Dow Jones Industrial Average gained 1.9%, while the Nasdaq declined roughly 2.5%. The markets were weighed down by AI-related concerns, stronger-than-expected wholesale inflation, significant changes to trade policies and the lingering geopolitical tensions. Yet, investor sentiment found some support from decent fourth-quarter earnings.

In such a volatile market environment, dividend stocks emerge as an attractive choice for steady income and long-term growth. Investors can focus on fundamentally strong banks that combine earnings stability with attractive dividend yields. Last week, Capital City Bank Group, Inc. CCBG, Red River Bancshares, Inc. RRBI, Unity Bancorp, Inc. UNTY and Simmons First National Corporation SFNC announced dividend hikes. These banks operate with a solid balance sheet and diversified revenue streams that support their ability to navigate macroeconomic uncertainty. With consistent capital distributions and prudent risk management, they offer investors a potential blend of income generation and relative stability even amid a challenging macro situation.

4 Bank Stocks to Watch

Capital City Bank, headquartered in Tallahassee, FL, offers a full range of banking services through full-service banking offices and automated teller machines (ATMs), primarily across Florida, Georgia, and Alabama. As of Dec. 31, 2025, it had $4.4 billion in assets.

On Feb. 26, CCBG announced a quarterly cash dividend of 27 cents per share, marking an increase of 3.8% from the prior payout. The dividend will be paid out on March 23 to shareholders of record as of March 9.

The company increased its dividend eight times in the past five years, with an annualized growth rate of 13.25%. It has a dividend yield of 2.43% and a dividend payout ratio of 29%.

CCBG Dividend Yield

The Zacks Consensus Estimate for CCBG’s 2026 sales indicates a year-over-year rise of 2.7%, while that for earnings suggests a 1.9% decrease. Over the past year, the stock has rallied 17.1%. This Zacks Rank #3 (Hold) company has a market cap of $731.3 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Red River Bancshares, a financial holding company headquartered in Alexandria, LA, provides a wide range of banking products and services to commercial and retail customers. It operates through 28 banking centers throughout Louisiana and two combined loan and deposit production offices in New Orleans and Lafayette. As of Dec. 31, 2025, RRBI had $3.35 billion in total assets.
 
On Feb. 26, RRBI announced a quarterly cash dividend of 25 cents per share, representing a rise of 67% from the prior payout. The dividend will be paid out on March 19, to shareholders of record as of March 9, 2026.

The company has increased its dividend six times in the past five years, with an annualized dividend growth rate of 16.43%. Red River has a dividend yield of 0.68% and a dividend payout ratio of 9%.

RRBI Dividend Yield

The Zacks Consensus Estimate for RRBI’s 2026 sales indicates a year-over-year rise of 6.7%, while that for earnings suggests 6.3% growth. Over the past three months, RRBI stock has rallied 24.6%. This Zacks Rank #2 (Buy) stock has a market cap of $583.3 million.

Unity Bancorp, the financial service holding company headquartered in Clinton, NJ, delivers community-focused commercial banking services, including deposit products, lending solutions and digital banking through its 21 branches across New Jersey and Pennsylvania’s Lehigh Valley. As of Dec. 31, 2025, the company had $3 billion in assets.

On Feb. 26, Unity Bancorp announced a quarterly cash dividend of 16 cents per share on its common stock, marking a hike of 6.7% from the prior-year quarter. The dividend will be paid out on March 20, 2026, to shareholders of record as of March 6, 2026.

The company has increased its dividend eight times in the past five years, with an annualized dividend growth rate of 12.11%. UNTY has a dividend yield of 1.13% and a dividend payout ratio of 12%.

UNTY Dividend Yield

Over the past three months, UNTY stock has gained 1.9%. The Zacks Consensus Estimate for UNTY’s 2026 sales indicates a year-over-year increase of 6.7% while that for earnings suggests an 46.7% increase. This Zacks Rank #3 company has a market cap of $534 million.

Simmons First National is the financial holding company headquartered in Pine Bluff, AR. Through its principal subsidiary, Simmons Bank, it offers a comprehensive range of client-centric financial solutions. It operates more than 220 branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. As of Dec. 31, 2025, the company had $24.5 billion in total assets.

On Feb. 24, SFNC announced a quarterly cash dividend of 21.5 cents per share, representing a rise of 1.2% from the prior payout. The dividend will be paid out on April 1, to shareholders of record as of March 13, 2026.

The company has increased its dividend six times in the past five years, with an annualized dividend growth rate of 4.25%. SFNC has a dividend yield of 4.27% and a dividend payout ratio of 50%.

SFNC Dividend Yield

Over the past three months, SFNC stock has gained 5.8%. The Zacks Consensus Estimate for SFNC’s 2026 sales suggests an increase of 9.3% year over year, while earnings are expected to jump 16.8%. This Zacks Rank #2 company has a market cap of $2.9 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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